Q110. Which economic growth framework underpinned India’s First Five-Year Plan?
[SSC GD Constable (26 February 2024, Shift 3)]
A. Mahalanobis model
B. Harrod–Domar model
C. Nehru model
D. Gadgil formula
Answer: B. Harrod–Domar model
Explanation: The First Five-Year Plan used a Harrod–Domar-style relationship between savings, investment, capital productivity and output growth. It placed emphasis on agriculture and irrigation, unlike the later Mahalanobis strategy’s heavy-industry priorities.
Q109. Which pair does NOT describe equivalent national-income concepts?
[SSC CGL Tier I (26 September 2024, Shift 3)]
A. Base period and reference period
B. Change in real GDP and GDP deflator
C. Nominal GDP and current-price GDP
D. Real GDP and constant-price GDP
Answer: B. Change in real GDP and GDP deflator
Explanation: Real GDP tracks inflation-adjusted production whereas the GDP deflator measures changes in the price level of domestically produced output. Thus a change in real GDP is not another name for a movement in its price deflator.
Q108. Which factor is highlighted as the principal reason for declining per-capita income in the cited multiple-choice question?
[SSC CGL Tier I (26 September 2024, Shift 3)]
A. More equal income distribution
B. Increase in population growth
C. Decrease in population growth
D. Decrease in GDP
Answer: B. Increase in population growth
Explanation: If population rises more rapidly than aggregate income, income per person falls, even if total output continues to increase. The question keys faster population growth, though a decrease in total output could also depress per-capita income in other circumstances.
Q107. Which statement about the circular flow of income is incorrect?
[SSC CGL Tier I (25 September 2024, Shift 3)]
A. Leakages and injections balance in equilibrium
B. One sector’s income becomes another’s expenditure
C. Real and money flows move in opposite directions
D. Saving and government spending are both injections
Answer: D. Saving and government spending are both injections
Explanation: Saving removes part of current income from spending and is therefore a leakage. Government expenditure adds expenditure to the flow and is an injection. In equilibrium, planned leakages and injections balance, but they are not the same category.
Q106. Which calculation gives Net Domestic Product?
[SSC CGL Tier I (25 September 2024, Shift 1)]
A. GDP minus depreciation
B. GDP plus depreciation
C. GDP minus net factor income from abroad
D. GDP plus net factor income from abroad
Answer: A. GDP minus depreciation
Explanation: GDP is gross output measured within national borders. Subtracting consumption of fixed capital gives Net Domestic Product; adjusting for net factor income from abroad instead changes the domestic-versus-national scope of measurement.
Q105. Choose the sequence that moves from broader national-income concepts toward disposable personal income.
[SSC CHSL (7 August 2023, Shift 4)]
A. GNP at market price, NNP market price, GNP factor cost, NNP factor cost
B. Disposable income, personal income, GNP market price, GNP factor cost
C. GNP factor cost, GNP market price, NNP market price, personal income
D. GNP factor cost, NNP factor cost, personal income, disposable personal income
Answer: D. GNP factor cost, NNP factor cost, personal income, disposable personal income
Explanation: The standard instructional ordering progressively deducts depreciation, then adjusts for income not received by households, and finally subtracts personal taxes to obtain disposable income available for consumption and saving.
Q104. When national income is measured by the income method, which of these are excluded:
A. lottery prize,
B. share brokerage,
C. illegal gambling income?
[SSC CHSL (8 August 2023, Shift 3)]
A. A, B and C
B. B and C
C. A and B
D. A and C
Answer: D. A and C
Explanation: Lottery winnings are transfers rather than payments for current production; illegal gambling earnings are excluded in the convention applied by this examination. Brokerage is a market service and contributes to measured output.
Q103. For national income estimation, assess:
I. Intermediate goods are excluded.
II. Final goods are included.
[SSC CHSL 2022 (21 March 2023, Shift 2)]
A. II only
B. Neither
C. I only
D. Both I and II
Answer: D. Both I and II
Explanation: Only final output should be counted separately because the value of intermediate inputs is already embedded in the final product. Both statements describe the double-counting safeguard used in national accounting.
Q102. Which formula estimates households’ personal income from national income?
[SSC CHSL 2022 (20 March 2023, Shift 2)]
A. NI + retained profit − interest − corporate tax + transfers
B. NI − retained profit − interest − corporate tax + transfers
C. NI − retained profit + interest − corporate tax − transfers
D. NI − retained profit − interest − corporate tax − transfers
Answer: B. NI − retained profit − interest − corporate tax + transfers
Explanation: Retained corporate earnings and corporate taxes do not reach households; transfer payments do. The specified formula adjusts national income for these differences to approximate personal income received by individuals.
Q101. Which concept means the income received by people from all sources before deducting personal income tax?
[SSC CGL (26 October 2023, Tier II)]
A. Disposable income
B. Personal income
C. National income
D. Gross income
Answer: B. Personal income
Explanation: Personal income is income actually accruing to individuals and households before personal direct taxes. After deducting personal income taxes and related payments, the remaining sum becomes personal disposable income.
